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Remittance is Becoming Less Secure

There is an urgent and pressing need to bring remittance back into the financial services mainstream, where it can be monitored and regulated.

Over the last fifteen years, governments have been fighting against money laundering and other criminal activity by tightening the regulations surrounding money transfer. Significant fines have been levied against institutions that were found to be negligent, and others, fearful of making similar mistakes, have exited the sector entirely. Thousands of bank accounts have been closed, often with no warning.

According to the World Bank, 28% of principals in money transfer organisations (who take the money) and 45% of handling agents (who pay it out) now have no bank account facilities. Over the same time period, the value of remittances has more than trebled.

The impact is clear: remittance has been driven underground. We are reliant upon the goodwill of money transfer operators to safeguard the system. Unfortunately, the lack of awareness and understanding among MTOs of money laundering regulations and techniques used by criminals means that we have drastically reduced our ability to spot problems and take action before they occur.

MoneyRouter™ is an intelligent solution to this problem. It allows banks to get back into the sector. It is not only commercially attractive, but it means that remittance can be regulated and monitored with the same judiciousness as other financial services.